TNAG-2258-FCO40-3254-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-Brit-1991 — Page 52

J S Wall Esq CMG LVO

Private Secretary

No. 10

CONFIDENTIAL

Issue

HONG KONG: HMG INVOLVEMENT IN AIRPORT FUNDING

Your letter of 26 April 1991 about the airport project

records discussion of a suggestion by Mrs Thatcher that the

airport might be built under ATP arrangements. We have looked at this option, in accordance with the instructions in the penultimate paragraph of your letter.

There are indeed overwhelming arguments against using ATP arrangements to finance the project. The Government's

policy is that ATP should be available only to developing

countries which have a per capita GDP of less than US$3000 (at 1981 levels): Hong Kong greatly exceeds this. Further, under arrangements which are now being considered by the OECD, associated financing is likely to be ruled out for

countries with a gucent GDP income per head of US$2335 and new disciplines will be introduced for large projects. We

expect these new rules to be approved by the OECD Ministerial meeting on 4/5 June.

PIGABE/1

PIGABE

CONFIDENTIAL

hope that